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Current retirees from the generation that had pensions of course. But Gen X, Millennial are most likely going to have little to zero retirement savings.
Current retirees from the generation that had pensions of course. But Gen X, Millennial are most likely going to have little to zero retirement savings.
Wasn't there a thread here recently that showed millennials were saving more than boomers did?
real estate investing is all good until its not. then it can be your worst nightmare dealing with tenants , lawyers and courts.
While I completely agree, there aren't too many alternatives. The two big things about real estate for me are the fact that it is insurable, and that it is a tangible asset.
I cannot insure my index funds. If some manager decides to gamble on something risky, or if a large portion of my holdings pulls an Enron, I'm up excrement creek. At least I can go live in a house if all else fails.
Don't get me wrong, I'm diversified out the wazoo. But I am very glad I have rental properties. Ultrarunner's friend's advice is spot on, "Take care of your property and it will take care of you." Getting good tenants is a big part of that.
While I completely agree, there aren't too many alternatives. The two big things about real estate for me are the fact that it is insurable, and that it is a tangible asset.
I cannot insure my index funds. If some manager decides to gamble on something risky, or if a large portion of my holdings pulls an Enron, I'm up excrement creek. At least I can go live in a house if all else fails.
Don't get me wrong, I'm diversified out the wazoo. But I am very glad I have rental properties. Ultrarunner's friend's advice is spot on, "Take care of your property and it will take care of you." Getting good tenants is a big part of that.
Houses aren't risk-free. What if you're forced out by unaffordable property taxes?
There is no such thing as a risk-free investment. You can purchase insurance on a house, and you can also insure your stocks using put options.
You have yet to give a reason to prefer real estate over stocks + renting, if the earnings from the stocks are enough to cover your rent net of non-capital expenses.
While I completely agree, there aren't too many alternatives. The two big things about real estate for me are the fact that it is insurable, and that it is a tangible asset.
I cannot insure my index funds. If some manager decides to gamble on something risky, or if a large portion of my holdings pulls an Enron, I'm up excrement creek. At least I can go live in a house if all else fails.
Don't get me wrong, I'm diversified out the wazoo. But I am very glad I have rental properties. Ultrarunner's friend's advice is spot on, "Take care of your property and it will take care of you." Getting good tenants is a big part of that.
insurable ? real estate is insurable only against physical loss. so are my funds. they carry sipc insurance .
neither is insured against loss in value.
if i had to bet on something and consider risk i think i would bet on the biggest 500 companies in the nation vs a home on a block .
Last edited by mathjak107; 08-24-2014 at 04:40 PM..
the part you are over looking is many of the successful were losers at one point.
i grew up in a nyc housing project. but i knew that life when i was an adult would never be an option and so it kept me motivated and learning so i could reach my goals that seemed more like pipe dreams.
if you are driven enough some will find away ,the rest will will find an excuse.
This post reminds me of an article I read some years ago. A successful African-American couple, both of whom had grown up in poverty, bought a house in an affluent suburb in Maryland. The wife said to the husband, "Did you ever imagine you would have the chance to live somewhere like this?" He said he replied, "Oh, I didn't just imagine it, I KNEW it. I knew it when I was a little kid living in the projects and heard the rats in the walls in the night. I was going to get out of there however I could." He'd made up his mind to have something different and found a way to get there.
It all depends on the quality of life you expect to have when you're retired. If you can comfortably live on $1500 a month that SS might provide then don't save a million. So many people will spend $500 a month on a car payment that in 5-6 years will be worth almost nothing. The same $500 a month compounded for 30 years in a growth stock mutual fund will grow to well over a million dollars.
This post reminds me of an article I read some years ago. A successful African-American couple, both of whom had grown up in poverty, bought a house in an affluent suburb in Maryland. The wife said to the husband, "Did you ever imagine you would have the chance to live somewhere like this?" He said he replied, "Oh, I didn't just imagine it, I KNEW it. I knew it when I was a little kid living in the projects and heard the rats in the walls in the night. I was going to get out of there however I could." He'd made up his mind to have something different and found a way to get there.
well the fact is in order to cover my basic needs and save i needed more income. if it took learning a trade and having two other jobs going on so be it.
that is why with few exceptions i have little sympathy when someone tells me how they can't make ends meet and save.
most able bodied folks can find a way if they really really wanted to.
I have been looking at retirement calculators online and all of them say I need way over $1 million to retire. Thats at $85K income and 30 years of age.
However, some calculator say even if you get only $20K today you will need $1 million to retire. For example, the Charles Schwab calculator says with $20k income and after retirement only spending $20k a year a person would need over $1 million.
That would seem to indicate huge percentage of Americans around 30, if not the vast majority of them needs to become millionaires in order to retire?!
That calculator does make sense if think of today's US Dollars adjusted for inflation in next 35 years and beyond. Honestly, I would doubt % of retiring Americans who are millions will soar anywhere near 50% in 35 years.
The problem shall be is how the retirees in future going to survive when fall far short of $1 million dollars? Looks like the retirement prospects for people in their 30s or younger are WORSE than they are now.
You are correct to cast suspicion on the retirement calculators and those who use them with blind allegiance. The reality is the as people age they spent much less than in their younger years.While health care costs have increased there are many ways to reduce costs in one's golden years.
But realism IS important. The US savings is abysmal. US spending and investment habits are awful. Americans' views of retirement are often nonexistent or without basis in reality.
Everything depends on life expectancy at retirement. Your spending habits, Where you live. How you wish to live. Your children. How much you wish to bequeath. Your options should you fall ill, injure yourself, etc. What kind of life you are willing to tolerate. What kind of social security you have built up.
I can see seniors living on little (like my Mom who hated to spend) or needing a lot given reckless spending (like so many seniors I know who make a bee line to the casinos once their checks come in).
Build the retirement model for unseengundam and no one else.
S.
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This post reminds me of an article I read some years ago. A successful African-American couple, both of whom had grown up in poverty, bought a house in an affluent suburb in Maryland. The wife said to the husband, "Did you ever imagine you would have the chance to live somewhere like this?" He said he replied, "Oh, I didn't just imagine it, I KNEW it. I knew it when I was a little kid living in the projects and heard the rats in the walls in the night. I was going to get out of there however I could." He'd made up his mind to have something different and found a way to get there.
